SB 169: "An Act authorizing an extension of the exemption from the levy and collection of the tax imposed on certain oil and gas pipeline transportation property during the period of pipeline construction, and amending the definition of `construction commencement date' applicable to that tax; and providing for an effective date."
00SENATE BILL NO. 169 01 "An Act authorizing an extension of the exemption from the levy and collection 02 of the tax imposed on certain oil and gas pipeline transportation property during 03 the period of pipeline construction, and amending the definition of `construction 04 commencement date' applicable to that tax; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. PURPOSE. It is the purpose of this Act to provide an incentive to encourage 07 the construction of oil and gas pipelines when their construction at an early date is shown to 08 be of net economic benefit to the state. 09 * Sec. 2. AS 43.56.010(b) is amended to read: 10 (b) A municipality may levy and collect a tax under AS 29.45.080 at the rate 11 of taxation that applies to other property taxed by the municipality. The tax shall be 12 levied at a rate no higher than the rate applicable to other property taxable by the 13 municipality. A municipality may not exempt from taxation property authorized to be 14 taxed under this chapter. Exemptions shall be limited to those in AS 29.45.030,
01 29.45.050, [AND] AS 43.56.020, and 43.56.025. 02 * Sec. 3. AS 43.56 is amended by adding a new section to read: 03 Sec. 43.56.025. ADDITIONAL EXEMPTION FOR EARLY DEVELOPMENT 04 OF PIPELINE TRANSPORTATION PROPERTY. (a) A taxpayer whose pipeline 05 transportation property is exempted from taxation under AS 43.56.020(b) may obtain 06 an extension of the exemption for the property. The department may grant the 07 extension of the exemption if the taxpayer demonstrates, to the satisfaction of the 08 department, that 09 (1) the provision of the extension will permit construction of the 10 pipeline to begin at a construction commencement date that is substantially earlier than 11 the probable construction commencement date of the pipeline without the exemption; 12 and 13 (2) the net increase in economic activity in the state attributable to an 14 earlier construction commencement date for the pipeline, as determined by the 15 department, will be greater than the loss of revenue to the state and municipalities 16 attributable to provision of the exemption. 17 (b) If approved by the department, the extension commences on the 18 construction commencement date and expires on the earlier of 19 (1) the December 31 following the date on which the pipeline begins 20 to transport gas or unrefined oil; or 21 (2) the December 31 specified by the department, not to exceed the 22 December 31 following the fifth anniversary of the construction commencement date. 23 (c) To qualify for the extension authorized by this section, the taxpayer shall 24 make written application to the department not later than 30 days before the 25 construction commencement date. The application must include all information that 26 the department may require by regulation. 27 (d) The department shall adopt regulations specifying the information to be 28 submitted in or with an application for an extension authorized by this section. The 29 regulations may include requirements that the applicant submit all information 30 necessary for the department to determine the property to be covered by, and the 31 duration of, the extension authorized by this section.
01 * Sec. 4. AS 43.56.210(2) is amended to read: 02 (2) "construction commencement date" means [THE EARLIER OF 03 APRIL 1, 1974 OR] the date the following occur: 04 (A) there has been issued to the owner or an agent of the owner 05 right-of-way permits, leases, and title and other rights in land, and other 06 approvals, permits, licenses, and certificates, by federal, state, and local 07 agencies that a reasonable and prudent person would consider adequate to 08 commence construction of the facilities in the expectation that all other 09 approvals, permits, licenses, and certificates necessary for the completion of 10 facilities will be obtained; 11 (B) all approvals, permits, licenses, and certificates are in full 12 force and effect, unrevoked and without any modification that might jeopardize 13 the completion or continued construction of the facilities; and 14 (C) an [NO] order, judgment, decree, determination, or award 15 of a federal, state, or local court or administrative or regulatory agency 16 enjoining, either temporarily or permanently, the construction or the 17 continuation of construction of the facilities is not in effect; 18 * Sec. 5. This Act takes effect January 1, 1994.